IFAD project “Diversification and Modernization of Agriculture of the Republic of Uzbekistan”

About loan

IFAD project “Diversification and Modernization of Agriculture of the Republic of Uzbekistan”

Borrowers: Small business entities, including  farm enterprises, young entrepreneurs engaged in or wishing to start entrepreneurial activities in the field of agriculture

Purpose of the loan: Financing of investment projects and replenishment of working capital in all sectors (except for the cultivation of cotton and wheat) of agriculture

Loan currency: In national and foreign (USD) currencies

Credit term:

• 10 years, with a grace period of 2 years; 
• For replenishment of working capital - 3 years, with a grace period of 6 months; 
• Greenhouses and cold stores - 10 years, with a grace period of 3 years
  

Interest rate:

• In the national currency - the main rate of the Central Bank of the Republic of Uzbekistan + 5 percent;
  
• In foreign currency - 10 percent per annum.

Amount of credit: based on the cost of the project, but not more than 350 thousand US dollars in equivalent:

• Farmers - from 10 thousand to 350 thousand US dollars in equivalent;
  
• For young entrepreneurs - from 5 thousand to 100 thousand US dollars in equivalent.

Types of security:

• Property pledge
  
• Guarantees and guarantees of third parties
• Insurance policy, etc.

Project funding regions:

• Andijan region
• Fergana region
• Namangan region
  

Additional Information:
Credit funds are not issued for the following areas:

• acquisition or lease of buildings and structures, land;
• modernization and construction of residential buildings;
• refinancing existing debt;
• replenishment of working capital of trade and intermediary enterprises in agriculture;
• financing of administrative costs, including the purchase of official vehicles;
• production, processing and trade in tobacco products;
• financing projects that have a negative impact on the environment.